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The House Communications Committee has discussed amending the law to do away with road tax for cars due to the steep increase in fuel tax.
 

If this were to happen the state would stand to lose about €91 million in lost revenue which would put a significant strain on state finances.
 

Communications Ministry Permanent Secretary Makis Constantinides told MPs “It is an undisputed fact that scrapping this tax would limit the revenue, which in 2009 reached €91 million”.
 

He said the issue at this point was not fairness or unfairness of the system, but the way state finances would be affected.
 

One way for the state to cover lost revenue was to further increase fuel taxes.  
              

The fuel tax hike will add about €73 million to the state coffers.
 

According to Opposition DISY Deputy Lefteris Christoforou, the current system is unfair as 100,000 vehicles do not pay road tax and therefore a more effective system that would ease the burden of motorists should be found.
  

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